• Boeing is seeking to raise nearly $19 billion to combat its cash crunch.
• This comes after Boeing reported a third-quarter net loss of $6.1 billion.
• Boeing has faced several challenges this year, such as a union strike and the Alaska Airlines blowup.

Boeing needs cash and is trying to raise nearly $19 billion as the company seeks to boost its liquidity.

The planemaker announced Monday that it is offering for sale 90 million shares of common stock and about $5 billion in depositary shares. Based on Friday’s closing price of $155.01, that represents a total value of approximately $18.95 billion.

This news comes after Boeing filed a prospectus Earlier this month, he said he could sell up to $25 billion in securities, including bonds, new stocks and stock options.

It’s above the $10 billion credit agreement that it concluded with Bank of America, Citibank, Goldman Sachs and JPMorgan Chase, according to a regulatory filing on October 14.

Boeing said in a statement that it “intends to use the net proceeds from the offerings for general corporate purposes, which may include, among other things, repayment of debt, additions to working capital, capital expenditures, as well as as financing and investments in the Company’s subsidiaries”.

When filing the prospectus, the company described the fundraising efforts as “two prudent steps to support the company’s access to liquidity,” adding that this would help the company “navigate a challenging environment.”

News of the offer comes as the company faces a challenging financial outlook.

Last Wednesday, Boeing reported a net loss of $6.1 billion in its third quarter results. It posted a loss of more than $1.4 billion in the previous quarter.

Boeing’s shares have fallen nearly 40% since the start of the year, and ratings agencies have said its bonds are at risk of being downgraded. demoted to junk status.

Also in its third quarter results, the company reported an increase in expenses for its $250 million Starliner project. To date, it has spent $1.85 billion on the Starliner program.

2024 was a difficult year for Boeing.

In January, an Alaska Airlines Boeing 737 Max lost a door cap mid-flight, sparking regulatory scrutiny and customer frustrations that led former CEO Dave Calhoun to resign.

Boeing also faces an ongoing worker strike. It began on September 13 after union members rejected a proposal increase salaries 25% over four years. Last Wednesday, Boeing workers rejected a proposal for a 35% wage increase over four years.

Ron Epstein, a Bank of America analyst, estimated strike cost Boeing $50 million per day.

Earlier this month, Boeing announced plans to lay off 10% of its workforce and a further delay in its highly anticipated 777X program.

News of the stock offering is expected to send Boeing’s stock price higher on Monday, up 0.8% in premarket trading.